A-share subscription | Qiangbang New Materials (001279.SZ) starts subscription As one of the largest domestic manufacturers of printed sheet materials

On September 25th, Qiangbang New Materials (001279.SZ) began its subscription with an issue price of 9.68 yuan per share and a subscription limit of 14,000 shares. The price-earnings ratio is 17.54 times and it is listed on the Shenzhen Stock Exchange, with Haitong as its exclusive sponsor. The prospectus revealed that Qiangbang New Materials is mainly engaged in the research and development, production, and sales of printing plates, and is one of the largest printing plate manufacturers in China. Since its establishment, the company has been focused on the research and development of photosensitive materials and their application in printing plates, and has established a complete product system for printing plates. Qiangbang New Materials' products are widely used in printing books, newspapers, magazines, brochures, corrugated cardboard boxes, food packaging boxes (bags), pharmaceutical packaging, adhesive labels, RFID electronic labels, and other printed materials. The company has 7 offset plate production lines and 1 flexographic plate production line, with an annual production capacity of 80 million square meters of offset plates. It is understood that the proceeds raised by Qiangbang New Materials, after deducting issuance expenses, are intended for the following projects: Financially, in 2019, 2020, and 2021, the company achieved operating revenues of approximately 1.265 billion yuan, 1.093 billion yuan, and 1.503 billion yuan, respectively. The net profits were approximately 125 million yuan, 76.6772 million yuan, and 70.467 million yuan, respectively. It should be noted that the prospectus specifically warns investors to pay attention to the risks of fluctuations in operating performance. The net profit has shown a downward trend over the past three years, mainly due to the impact of the epidemic, a significant increase in the purchase price of the main raw material aluminum coils since the second half of 2020, and the confirmation of share payment expenses. Considering that the prices of offset plates sold to major customers by the issuer are negotiated based on the price of aluminum, the issuer's long-term profitability will not be significantly affected. If the factors causing the rise in raw material prices persist in the short term, it will lead to a continuous increase in product unit costs. Due to the lag in price transmission, the issuer will face the risk of continued decline in operating performance in the short term.